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Fressnapf - the untamed success of the specialty discounter
The behavioural researcher Konrad Lorenz said: "The desire to keep a pet emanates from an ancient basic instinct - namely civilised mankind's yearning for the lost paradise." In Germany, this yearning is considerable as around 23 million pets live here, not counting aquarium fish and reptiles. Not great enough, thinks one man whose business is everything to do with pets. "Germany ranks behind among the pet keeping nations in Europe. Italy, France and Great Britain for example keep more pets than we do. So Germany still needs to catch up", says Torsten Toeller, founder and CEO of Fressnapf Tiernahrungs GmbH.
"We are all animal lovers"
But the business which he founded has no need whatever to catch up. Fressnapf is an exception among the companies in the retail sector and is presumed to be a shooting star: 20 years after its establishment, Fressnapf is the undisputed number 1 for pet supplies in Germany and Europe. Steadily climbing turnovers apparently go without saying and with around 100 grand openings per year, the franchise company strikes fear into the hearts of the competition. "One of our success factors is that we orientate ourselves closely to the wishes of our customers and have something in common with them: we are all animal lovers. This sets us apart from the majority of the competition", explains Torsten Toeller. This sounds like marketing strategy, however, Toeller has a counter argument. He has three dogs in his family, sheep graze on the grounds of the Fressnapf headquarters in Krefeld, also a herd of fellow deer lives there. "Unusual", some people think, but being "different to all the others" is part of the trademark of Toeller and his company.
Benchbreaking rather than benchmarking
Toeller often tills virgin soil with his ideas. He doesn't shy away from controversy with the diverse representatives of the specialty pet trade, and that has earned him the reputation of being a lateral thinker. This doesn't bother the 43 year old, just the opposite. "Whoever wants to actively mould the market and keep their nose permanently in front must be innovative. Companies may not travel the worn-out paths, but must break the market rules consequently and successfully", says he. The success proves him right. In June 2009, the 1,000th Fressnapf store in Europe opened in Munich. Meanwhile, the number of Fressnapf stores has grown to around 1,100, more than 760 of them in Germany. In 2009, Fressnapf Tiernahrungs GmbH recorded a turnover of 1.2 billion euros throughout Europe, thereby achieving a growth of 12.2 percent over the previous year. With its German stores, Fressnapf increased turnover to 830.9 million euros thus booking a plus of nine percent. Top of the German and European leagues, the Krefeld trading business occupies third place worldwide - behind the US American companies PetSmart and PETCO.
From Erkelenz to the top
The "Fressnapf Idea" began to ripen at the end of the 80's when Torsten Toeller returned from a trip to the USA having been inspired by the concept of the American pet superstores. He wanted to establish this type of specialty discounter for pets in Germany, too, but his boss at the time blew the idea out. "No one wants pet food stalls in Germany", was his opinion. So the 24 year old Toeller took matters into his own hands. On January 18, 1990 he opened the first ever Fressnapf store in Erkelenz, North Rhine-Westphalia. But all beginnings are known to be difficult, which the young entrepreneur Toeller soon came to notice. Too expensive, too little choice, thought the customers of the original Fressnapf. So he sold his car, doubled his range and dropped prices massively. Shortly after he had multiplied the turnover and thus laid the foundation stone for Fressnapf Tiernahrungs GmbH. Henceforth the symbol of Fressnapf has stood for rapid expansion. The company opened the first franchising stores in 1992; over the years, hundreds of new stores opened their doors in Germany. The first Austrian Fressnapf store went to the starting blocks in 1997, in the years 1998 and 1999 further locations followed in Switzerland and in Luxembourg. In the meantime, pet owners in twelve countries can purchase their pet food and accessories at Fressnapf. In countries such as Italy, France, Denmark, Ireland or Spain, the Fressnapf stores go by the name of "Maxi Zoo".
Huge range on a large sales area
Fressnapf stores are different to the good old pet shops. Fressnapf means bright, generous aisles, huge choice and favourable discount prices. Accordingly, all Fressnapf stores have a uniform concept: on a sales area of 600 square metres on average, the specialty stores offer an assortment of around 10,000 articles in the categories of pet food and accessories, including a large selection of products for dogs, cats, rodents, birds, fish and specialties such as low fat food, light diets, mix-your-own pet food and special food for pets with allergies. Private label ranges like MultiFit, fit+fun, SELECT GOLD, Premiere, real nature, AniOne, PetBalance, PetBalance Medica and Bioplan meet the diverse demands of pets and pet owners. The private label MORE4 with modern accessories in high-quality designs for cats and dogs rounds the assortment off. The products are sold by trained staff who unlike those in supermarkets or DIY stores know pets really well and can offer the customers expert advice. With its XXL stores Fressnapf presents a new concept of experience shopping on a large sales area of over 1,200 square metres. Especially terraristic and aquaristic enthusiasts can get excited about the attentively designed experience areas. With a series of services from pet insurance and grooming through to veterinary surgeries, Fressnapf with its cooperation partners emerges as problem solver and full liner all around pets. In November 2009, Fressnapf's online shop opened its digital gates - and makes the company a multichannel retailer with internet and stationary trade.
Fressnapf - a prize winning business
Fressnapf has received several distinctions for its success as a business. In 2003, Torsten Toeller was voted "Entrepreneur of the Year", in 2004 his company was rewarded the prize "Franchiser of the Year". In 2005 Fressnapf was able to add two further prizes to its long list of awards. Thus the company came to win the Oscar of their branch, the "Goldener Zuckerhut" (Golden Sugar Loaf), the trading sector's highest accolade. The top-class jury based their judgement on the fact that Fressnapf, within 15 years of establishing the company, had seen off the trade specialists as well as the competition from the food trade. Ingrid and Herbert Müller, Fressnapf franchisees, have been voted "Franchisee of the Year 2005" by the 'Publisher for the German Economy'. This award recognises businesswomen and businessmen for finding the way to successful self-employment at the side of a strong franchiser. In 2007, the 'Association of European Marketing and Sales Experts' conferred Torsten Toeller the "Award of Excellence" for his successful business idea. In a study of the 100 most successful franchise systems in Germany, the business magazine 'impulse' placed Fressnapf behind McDonald's as second best franchiser in 2006, 2007 and 2008. After all, in 2008 Fressnapf was awarded "Pet Retailer of the Year" and last but not least in 2010 honoured with the "Global PETS Award".
Torsten Toeller and his franchisees have a clear aim for the future: to further increase Fressnapf's market share, which at the end of 2009 stood at 22 percent of the total market, since, so Toeller, "we have by no means exhausted our potential."
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Fressnapf Tiernahrungs GmbH